Abbey Mortgage Bank Plc has released its unaudited financial results for Q1 ended March 31, 2026, reporting a pre-tax profit of N750.282 million, reflecting a 108.79% increase compared to N359.342 million in Q1 2025.
This shows that the mortgage bank exceeded its Q1 2026 pre-tax profit forecast of N388.51 million by nearly 100%.
Profit after tax also surged by 110% YoY to N715 million; 33% of the 2025 full year profit, and if sustained in the succeeding quarters of the year, Abbey Mortgage Bank will surpass its 2025 profit by over 32%
Earnings per share equally improved significantly to 28.18 kobo from 13.41 kobo in Q1 2025
Key highlights (Q1 2026 vs Q1 2025)
- Interest income: N6.713 billion, +82.29% YoY
- Interest expense: N5.395 billion, +95.67% YoY
- Net interest income: N1.318 billion, +42.41% YoY
- Net fee and commission income: N211.241 million, +384.27% YoY
- Operating income: N1.616 billion, +58.46% YoY
- Operating expenses: N865.716 million, +31.08% YoY
- Total assets: N222.395 billion, +34.11% YoY
- Loans and advances to customers: N10.198 billion, +4.91% YoY
- Customer deposits: N119.54 billion, +50.12% YoY
- Equity: N11.502 billion, +6.63% YoY
What is driving the numbers
Abbey Mortgage Bank posted an impressive Q1 2026 performance, delivering strong profitability driven by a combination of factors, particularly robust interest income growth.
- Interest income was largely driven by earnings from short-term funds, which stood at N5.279 billion, accounting for over 78% of total interest income.
- The bank also earned N850.72 million from investments in securities.
- Income from loans and advances came in at N582 million, slightly lower than the N664 million recorded in Q1 2025.
The composition of interest income reflects the bank’s asset allocation across key earning assets. As of March 31, 2026, the bank’s financial position shows:
- Investments in securities at amortized cost rose to N146.449 billion, up from N106.57 billion as of December 2025, accounting for a significant portion of the bank’s total asset base.
- Loans and advances increased to N10.198 billion, compared to N9.72 billion as of December 2025.
- Due from other banks and financial institutions stood at N59 billion, up from the N44 billion in December 2025
Interest expense
Interest expense for the period was driven primarily by N5.203 billion in interest paid to customers, which constituted the bulk of the total.
- In comparison, N191 million in interest on borrowings remained minimal. As a result, total interest expenses surged 96% YoY to N5.39 billion.
Despite this, net interest income increased to N1.32 billion compared to N925.496 billion. With zero impairment, net interest income after impairment stood at N1.317 billion
The net interest income combined with non-interest income, which includes fee and commission income and other operating income, pushed operating income to N1.616 billion, reflecting 58% YoY increase.
- The bank recorded 385 YoY growth in fee and commission income to N211.241 million.
Balance Sheet
The bank’s total assets grew by 34% to N222.394 billion, with customer deposits funding a significant portion; 54% of the balance sheet size.
- The bank’s shareholders’ funds increased by 7% to N11.5 billion, driven by share capital (N5.1 billion) and retained earnings (N3.14 billion). While share capital growth remained flat, retained earnings grew by 29.46%
However, shareholders’ funds represent just 5% of total assets, indicating the bank’s strong reliance on customer deposits for funding.
Share price performance
Abbey shares gained 0.35% intraday, reaching N6.30 on April 30, 2026, following the release of its Q1 2026 results.
However, year-to-date (YtD), the stock has declined 1.56%, following an impressive 113.33% YtD gain in 2025.
